If you have a Minnesota overpayment it means you paid more taxes than you owe and you are due a refund.
The question of if you want to apply your overpayment to your next year's taxes is asking if you do NOT want that refund and instead want to leave it on your "account" with Minnesota. If you never owe tax, you can answer that you do not want to do that. Then you will get the refund you are owed.
